Standard & Poor’s has admitted a series of “administrative errors” left a €1bn ($1.4bn) Royal Bank of Scotland fund on the brink of being downgraded for over a year and a half.
The credit rating agency came clean today that RBS’s €1bn BBB-rated 4.625 per cent fixed-to-floating rate of subordinated notes was wrongly put on credit watch with negative implications on 4 August 2009.
Despite identifying the blunder on 15 September 2010, S&P; then committed a further “administrative error” by leaving the fund on credit watch for another six months.
In a statement issued on Monday the credit rating agency said: “We have today rectified the errors by removing the issue from CreditWatch. The issue rating is unchanged at BBB.”
A phone call to S&P; on the matter has yet to be returned.
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